Stock Market & Financial Investment News

Scotia Waterous retained by Devon for Eastern Ohio asset salesScotia Waterous, the oil and gas arm of Scotiabank, said it has been retained by Devon Energy (DVN) to advise and assist in the sale of the companyís Utica Shale / Point Pleasant assets in Eastern Ohio. The Utica / Point Pleasant play is currently in the early stages of appraisal and development, Scotia Waterous said, adding that well results "are promising and there is growing confidence in the prospectivity of the play given very significant leasing and drilling activity." Bids are due on March 13.Reference Link

Devon Energy sees 2015 oil production growth 20%-25%Devonís 2015 E&P capital budget is $4.1B-$4.4B. This level of investment implies around a 20% decline in E&P spending compared to 2014 and is designed to better balance capital expenditures with expected cash inflows, it stated. It added, "Even with reduced E&P capital investment in 2015, the companyís production growth outlook remains unchanged. With significant improvements in completion design and a capital program focused on development drilling, Devon expects to deliver oil production growth of 20 to 25 percent year over year on a retained property basis. This production outlook is driven by balanced oil growth in both the U.S. and Canada."

Devon Energy volatility elevated into Q4 and outlookDevon Energy February call option implied volatility is at 51, March and April is at 33; compared to its 26-week average of 30 according to Track Data, suggesting large near term price movement into the expected release of Q4 result on February 18.